Markets on edge over higher raw material costs, Cramer said Monday, so investors need to look for companies with pricing power and control over their expenses.
Take Globe Specialty Metals , for example. The New York City-based company produces silicon metal and silicon-based alloys. Silicon metals are key inputs for a host of end markets that continue to gain strength, like chemical companies and steel makers. Globe is the largest silicon producer in the U.S. and a major contender on the international front. The company is able to operate as an oligopoly and as a result, benefits from great pricing power.
Globe not only has a huge share of markets around the world, it operates in an industry that has huge barriers to entry. It takes up to five years to build a new silicon metals plant. New facilities also need a long-term supply of electricity, as well as quartz, coal and wood. Globe benefits from leasing rights to two quartzite mines and owns a forest in Brazil. In turn, it has a lot of control over its expenses.
Globe's stock has rallied 166 percent since Cramer first recommended it in Dec. 2009 at $8.49. Cramer thinks this company has room to run, though. To learn more about its future prospects, Cramer spoke with CEO Jeff Bradley. Watch the video to see the full conversation.
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